Old Hickory Hills Middle School is shown. A developer requested an extension to pay $2.5 million for the former Hickory Hills school property. / Bob Linder / News-Leader

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Developer Paul Larino plans to demolish the old schools to make way for a 46-acre commercial space. / News-Leader file photo, 2010

Road project

Developer Paul Larino and the Missouri Department of Transportation have been meeting to discuss major roadwork at Chestnut Expressway and U.S. 65.Frank Miller, planning manager for the southwest district of MoDOT, said "regardless of what happens with the developer, we intend to do something with that intersection.""It's been designed right now," he said.A rezoning request was approved in 2007, changing the former school property from single-family residential and agricultural use to general retail.City rules for retail development -- which remain, regardless of the developer -- call for Eastgate Avenue to be relocated east, away from 65, and for the portion of Chestnut that runs along the property to be widened to five lanes.A diverging diamond interchange planned to run beneath U.S. 65.Miller said the entire project, which could start as early as spring 2013, is expected to cost about $7 million although there is talk of improving a larger section of Eastgate to support the planned retail development."We will work with Larino on the Eastgate piece," Miller said. "The cost of Eastgate could go up depending on what we do there."Funding for the project will be a joint effort between Larino, the city of Springfield, Greene County and MoDOT. Miller said once it starts, the road improvement project is expected to take 12-19 months to complete.

Developer Paul Larino has missed a payment deadline for the former Hickory Hills school property and wants more time to come up with the $2.5 million.

Larino Properties LLC agreed to pay the Springfield school district $4.5 million for the 15.5-acre property along Chestnut Expressway, east of U.S. 65.

The contract signed in December required an initial cash payment of $2.5 million by June 15. Two more payments of nearly $1 million each were to be paid -- through an interest-bearing promissory note -- by the end of 2015 and 2017.

"I've asked for an extension because we have to get some things in place," Larino said Monday. "We're still getting things worked out."

The contract states if the "buyer is unable to secure financing to make the cash payment," the agreement can be rescinded.

The Springfield school board is expected to address options, including a possible extension, when it meets June 28.

"The June 15 deadline was not met in accordance with the contract and the board will be discussing future steps," said district spokeswoman Teresa Bledsoe.

The property was put up for sale in 2006, when concerns about traffic and safety spurred the district to relocate the 780-student Hickory Hills elementary and middle school. A new campus was eventually built at Greene County YY and Farm Road 193.

Larino plans to demolish the 102,609-square-foot former elementary and middle school early next year to make way for the Hickory Hills Marketplace, a 46-acre commercial development.

"Really the only way we can run utilities at the site is to regrid," he said, noting existing sewer lines are too shallow and pipes are too small to support large retail stores. "There's really no opportunity to keep the school."

Larino said the sluggish economy and a "slow and time-consuming" process to secure an anchor tenant has delayed the payment.

"We're about to get things rolled up ... I'm hoping fairly soon," he said of naming the anchor. "We have a confidentiality agreement so I'm not at liberty to say any more."

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The district owned about 20 acres and subdivided the site to keep 3.5 acres, including the district natatorium and its adjacent parking lot. The rest was sold to Larino Properties.

District officials have said the completed Marketplace development is expected to generate up to $300,000 a year in additional property tax revenue for the schools.

An environmental assessment will be completed on the former school to identify and clean up asbestos before it is demolished. Larino said property grading plans -- required to obtain some permits -- are 80 percent complete.

"At the end of the day, people want to see a shovel in the ground and they don't understand everything that goes into the background," he said. "I'm still excited to work on the project."

As part of the development, High Street Baptist Church sold 20 acres to Larino Properties.

Pastor Eddie Lyons said Monday that communication continues with Larino and "we feel we are progressing." He declined to disclose the price or how much might have been already paid.

"As far as we're concerned, everything is still good," Lyons said. "He has met all of his obligations to date."